Consumers experience 5G mobile phones at a business hall of China Mobile Beijing Branch in Beijing, capital of China, Oct. 31, 2019. (Xinhua/Shen Bohan)

The Biden administration is investigating China Mobile, China Telecom and China Unicom over concerns that the three firms could exploit access to American data through their US cloud and internet businesses by providing it to Beijing, Reuters reported on Tuesday, citing people familiar with the matter.

The reported probe into the cloud services from Chinese telecom carriers over so-called national security risks is just another example of politicization of trade issues, which  harms normal business operations, experts said.

The Chinese Embassy in Washington said it hopes the US will "stop suppressing Chinese companies under false pretexts," adding that China will continue to defend the rights and interests of Chinese companies, according to the Reuters report.

The moves come  amidst efforts by the US to further restrict the influence of Chinese companies on US consumers, businesses, and communication networks as part of a broader effort by Washington to crack down on Chinese companies over national security concerns.

Experts have raised concerns about the impact of such investigations on normal business operations and the overall development of the cloud services industry. 

Xiang Ligang, a telecom expert, highlighted the importance of cloud services in facilitating cooperation and data storage between Chinese and American companies.

"Many companies have operations in both countries and rely on cloud services to connect their operations. Cutting off these connections under the pretext of security risks is detrimental to the development of the cloud services industry as a whole and inconvenient for companies using the services," Xiang said.

Yet the impact on Chinese telecom carriers is likely to be limited due to their small scale in the US, he added.

The investigation into Chinese telecom carriers is not the first time that that the US has targeted Chinese companies over so-called national security concerns. 

In 2019, the Federal Communications Commission denied China Mobile's application to provide telephone service in 2019 and revoked China Telecom and China Unicom's licenses to do the same in 2021 and 2022 respectively, Reuters reported.

In response to US crackdown on Chinese companies, the Chinese Foreign Ministry said that the US is using "national security" as an excuse to unjustly suppress Chinese telecom operators without providing any specific evidence.

This blatant abuse of state power undermines international trade rules and harms the rights of consumers worldwide, including those in the US. China will support its companies in defending their rights and will take necessary measures to protect their legitimate interests.